Trending value: 5 stocks for the next boom market?
Earlier this week Ed published a piece exploring the idea of Trending Value – in other words, buying cheap, improving stocks with positive momentum. These might be stocks overcoming temporary difficulties or perhaps going through a period of transition.
The key is to ensure they have momentum as well as value – this is a quite different strategy to the Deep value approach Ed discussed previously.
In the StockRank system, trending value shares are typically those with high ValueRank and MomentumRank scores. Even more simply, we can look for stocks with a high VM Rank – you can find a handy listing of the Top VM Rank stocks here.
A new boom market?
I’d suggest exploring the VM Rank listings as a starting point. I can certainly see some shares that are on my radar on this list right now. However, I think there’s scope to refine this view further by narrowing down the selection using some additional metrics – or perhaps – by narrowing down the choice of sectors.
One interesting trend I’ve noticed in my own research over the last 6-12 months is the number of times my screening has flagged up industrial stocks...